The EOQ model is most relevant for which one of the following? a. ordering items with...

The EOQ model is most relevant for which one of the following?

	a.	ordering items with dependent demand
	b.	determination of safety stock
	c.	ordering perishable items
	d.	determining fixed interval order quantities
	e.	determining fixed order quantities

Expert Solution

EOQ is best used for

Determining Fixed ordering quantities

Option e is correct

It is because, EOQ model is used in cases when annual demand is fixed. Hence, fixed order quantities which will minimise the cost are calculated by using EOQ method.

keosha answered 2 years ago

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